Wednesday, June 4, 2008

CLOSE: V Dbl Calendar +23.3%

On 5/22/08 I opened the trade as follows:
BOT CALENDAR V JUL 08/JUN 08 75 PUT @1.30 debit
BOT CALENDAR V JUL 08/JUN 08 80 PUT @1.20 debit
Total cost basis= $2.50

On 5/29/08, I adjusted my 75/80 dbl. put calendar to an 80/85 dbl put calendar.
SOLD CALENDAR V JUL 08/JUN 08 75 PUT @ $0.95 credit
BOT CALENDAR V JUL 08/JUN 08 85 PUT @ $1.45 debit
New cost basis= 2.50 +1.45 - 0.95= $3.00

Today I exited completely out of the trade:
SOLD DBL DIAG V JUL 08/JUN 08 85/80/85/80 PUT @ $3.70 credit

3.70-3.00/3.00= 23.3% ROI 13 days

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